\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 73 Shenyang Xingqi Pharmaceutical Co.Ltd(300573) )
Events
On April 20, 2022, the company disclosed the annual report of 2021. In 2021, the company achieved an operating revenue of 1.028 billion yuan, a year-on-year increase of 49.26%, and the net profit attributable to shareholders of listed companies was 195 million yuan, a year-on-year increase of 121.31%. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 185 million yuan, a year-on-year increase of 117.09%. The basic earnings per share is 2.39 yuan / share, and a cash dividend of 4.00 yuan (including tax) is proposed for every 10 shares.
Event comments
The rich product structure has driven a substantial increase in revenue and net profit, and the income of medical services has maintained a considerable growth rate
The company’s mature products cover ten sub categories of ophthalmic drugs, with a total of 51 ophthalmic drug approval numbers, 30 included in the medical insurance catalogue and 6 products included in the national basic drug catalogue. Among them, the fast Deproteinized Calfblood Extract Eye Gel, the di eye gel and the di Fei eye drops have contributed more than 10% of the main business income. The first batch of China’s cyclosporine eye preparation Cyclosporin Eye Drops (II), which was used for dry eye, has been formally implemented in 2022, and will be a new force in 2022. From the perspective of revenue splitting at the product end, under the background of the decline in the number of outpatient clinics and surgeries in China last year, the income of medical services still maintained a rapid growth, realizing an income of 317 million yuan (accounting for 30.88%), a year-on-year increase of 130.71%. The sales revenue of eye drops and solutions increased significantly year-on-year, reaching 39.70% and 44.99% respectively, contributing 303 million yuan and 54 million yuan respectively. Eye drops, which contributed to core revenue, generated revenue of 349 million yuan (accounting for 33.97%), with a year-on-year increase of 20.00%.
The gross profit margin and net profit margin increased steadily, and the cost expenditure was properly controlled
The company’s profit continued to improve, with the gross profit margin of sales of 78.09%, up 4.96pct; The net sales profit was 20.34%, up 6.77pct, mainly due to the effective expenditure control of the company, and the operating cost increased by 21.74% year-on-year, which was significantly lower than the growth rate of revenue. The sales expense ratio is 32.91% (- 2.55 PCT), and the management expense ratio is 11.51% (+ 0.31 PCT); The financial expense rate is 0.60% (-0.31pct). The company has sufficient cash flow, and the operating cash flow has increased significantly to 307 million yuan, with a year-on-year growth rate of 151.28%.
The pipeline under research has been continuously promoted and expanded, and 0.01% atropine eye drops have opened up a new blue ocean of myopia drugs
The company’s R & D expense was 884466 million yuan, a year-on-year increase of 39.96%, and the R & D expense rate reached 8.56%. The continuous growth of R & D investment promoted the smooth progress of 23 R & D projects of the company, including chemical drug class 2.4 0.01% atropine eye drops (delaying the progress of myopia), class 2.4 tacrolimus suspension eye drops (immune rejection after corneal transplantation) and class 2.2 voriconazole eye drops (eubacterial keratitis). Among them, 0.01% atropine eye drops (NITM) obtained the approval of in-hospital preparations and contributed to the income of medical services with the advantage of Internet medicine; 0.01% atropine eye drops (delaying the progress of myopia in children) is in the phase III clinical trial stage, including three clinical trials (0.01%; 0.01%; 0.02% & 0.04%). The drug has good efficacy and safety. Its R & D progress is leading in the world and the competition pattern is excellent. It is expected to become the first batch in the world.
Continue to strengthen market expansion and optimize customer structure
The company adopts a customer-centered and academic led sales model to continuously strengthen academic promotion. In 2021, zrun, sugaojie and Diyou entered 11 Chinese expert consensus; The company participated in more than 20 national large-scale ophthalmic conferences, carried out the live broadcast of dry eye prevention and treatment science watched by tens of thousands of people online, carried out academic exchanges with Aier Eye Hospital Group Co.Ltd(300015) , Huaxia ophthalmology and other private ophthalmic medical institutions, held more than 40 academic conferences successively, held 30 academic conferences of Xingqi dry eye education academy, covered 3000 offline doctors, carried out nearly 50 academic courses and invited 200 ophthalmic experts to give online lectures. Through academic promotion, the company continues to strengthen doctor-patient education and improve the company’s brand image, so as to benefit more patients.
Investment advice
We expect that the company’s revenue from 2022 to 2024 will be RMB 1.471 billion / 2.119 billion / 2.890 billion respectively, with a year-on-year increase of 43.2% / 44.0% / 36.4% respectively. The net profit attributable to the parent company was 306 / 497 / 786 million yuan respectively, with a year-on-year increase of 57.2% / 62.4% / 58.2%, corresponding to PE of 24.93/15.35/9.70x and EPS of 3.47/5.64/8.92 yuan / share. Considering the company’s stable performance, mature product market and the heavy new products of cyclosporine eye drops (II) and 0.01% atropine eye drops, the “buy” investment rating is maintained.
Risk tips
The risk of drug promotion is less than expected; New drug R & D and approval risks; Pharmaceutical policy fluctuation risk, etc.
